Things are finally going in the right direction, the bank manager is smiling and the business is expanding, but this growth has to be funded. This presentation looks at the issues that surround funding expansion. Funding can come from a number of sources, banks, private equity, management buy-in’s and related parties. Each of these areas can raise some challenging commercial and tax issues.
This presentation covers:
- restructuring and rolling over to bring in a new investor
- what entity should be used for the new activity? Is the current structure best suited for expansion?
- management “buy-ins”
- debt / equity rules – will my interest payments still be deductible?
- dealing with Division 7A issues prior to expansion
- venture capital funding and the types of instruments used.